Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...

Gold price below 200-day moving average

IMG Auteur
Published : March 19th, 2012
354 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...





The gold price ended last week on a lacklustre note – buffeted by traders’ flight to equity markets amid further signs of improvement in the US economy and a cooling of economic tensions in Europe. Gold stood at $1,658 at Friday’s London PM Fix, down from around $1,700 last Monday. As can be seen from the 10-year Kitco gold price chart below, last week’s price decline in the metal took us below both gold’s 60-day moving price average (MA) and the 200-day MA. Gold hasn’t been this cheap relative to its 200-day MA since the 2008 panic.

Both the 60 and 200-day MA are around $1,675-$1,685 – this being something of a pivot point for the gold market in recent weeks. Gold bulls will face selling resistance at this point on the way up – and again at $1,700 – but their more immediate concern will be to stem the bleeding from last week.

On this score, events as far as the US dollar, Treasuries and commodities markets are concerned remain key (as ever). Though the Dollar Index held steady over the course of last week, there is a more or less continuous drip of dollar-bearish news emanating from Asia in relation to the buck’s role as a settlement currency in international trade. And while the Fed’s recent “no more money printing yet” comments encouraged gold selling, it has also encouraged selling of US Treasuries – The Wall Street Journal reporting that some analysts are even daring to ask: “Is the decades-long bull market for bonds finally over?”

Meanwhile, crude oil remains strong. Brent crude gained $3.22 on Friday to settle at $125.82 a barrel, while WTI gained $1.95 to settle at $107.06, with WSJ reporting market fears of a 2008-style oil price spike. Given the combination of Middle Eastern tensions and loose monetary policy on the part of all the world’s major central banks, it’s a question of when and not if as far as an oil price spike is concerned. And dramatic gains in oil will make it that much harder for short sellers to keep a lid on the gold price.



Thanks to Goldmoney from
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
Mining Company News
Tribune Res.(Ag-Au)TBR.AX
Notice of Annual General Meeting/Proxy Form
AU$ 4.05-1.22%Trend Power :
Corporate news
Black HillsBKH
3:41 am Black Hills Corp raises its FY15 EPS guidance
US$ 43.33-1.23%Trend Power :
Corporate news
Goodrich Petroleum(Ngas-Oil)GDP
Goodrich Petroleum Announces Private Exchange Transactions for Convertible Senior Notes
US$ 0.82+1.23%Trend Power :
Corporate news
Carmanah Tech CorpCMH.TO
Carmanah Releases Preliminary Financial Results for Q3 2015
CA$ 6.01+2.04%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Raises 2015 Earnings Guidance and Announces Analyst Day Presentation Topics
US$ 43.33-1.23%Trend Power :
Corporate news
Impact Silver(Ag-Au-Cu)IPT.V
IMPACT Silver Provides Update on New Capire Mineral Resource Study
CA$ 0.18+16.13%Trend Power :
Corporate news
Bankers Petroleum(Oil)BNK.TO
Edited Transcript of BNK.TO earnings conference call or presentation 7-Oct-15 12:30pm GMT
CA$ 2.44-6.87%Trend Power :
Corporate news
Cheniere Energy(Oil)LNG
LNG Bust Could Last For Years
US$ 53.04-0.47%Trend Power :
Corporate news
Callon PetroleumCPE
4:18 pm Callon Petroleum announces that the borrowing base under its senior secured revolving credit facility was increased by 20% to $300 mln
US$ 8.86-3.90%Trend Power :
Corporate news
Callon PetroleumCPE
Callon Petroleum Company Announces 20% Increase in Borrowing Base
US$ 8.86-3.90%Trend Power :
Corporate news
Comments closed